Challenges and Threats of the Digital Economy to the Sustainability of the National Banking System

Abstract

The goal of the study – development of specific methodical reasoned proposals on improvement of the mechanism for ensuring sustainable development of the national banking system and its security against external challenges and threats to cyberspace. The scientific novelty consists in a comprehensive analysis of the processes of ensuring the cyber stability of the Russian banking system in the context of escalation of external challenges and threats to the digital economy. The authors used the following methods: general scientific (observation, comparison, measurement, analysis and synthesis, logical reasoning method), specific scientific (static analysis, peer review, graphical method). In the article conducted a critical review of domestic and foreign scientific literature and practical recommendations to ensure the protection of the banking institution from cyber threats in the digital economy; presented a comparative analysis of the organization of the cybersecurity system in the Russian and foreign banking systems; done multidimensional statistical analysis of cyber threats for Russian banks; substantiated recommendations and proposals on organizational, economic and legal improvement of the system of protection of Russian banks from internal and external cyber threats. As a result, it is shown that the main problem points (zones) of the banking system, creating the prerequisites for the occurrence of cyber-risks are: 1) there is no exchange of information on cyber-attacks and their mechanisms; 2) banks interact inefficiently with the state regulator of Internet – Roskomnadzor; 3) low level of competence of bank employees who are responsible for cybersecurity; 4) limited budget of small and medium-sized banks that wouldn’t allow them to care independent cyber-protection units; 5) growing popularity of new fintech services and new fintech companies. The author draws a conclusion that the following measures are necessary for organizational, economic and legal improvement of the system of protection of Russian banks from internal and external cyber threats: the processes of development of banking ecosystems should be intensified; a federal interbank register of cyber fraudsters must be created; a single banking «polygon» for testing cyber threats needs to be developed.

Developing Cybersecurity Frameworks for Financial Institutions: A Comprehensive Review and Best Practices

“…The comparative analysis reveals that despite the differing challenges faced by each country's financial institutions, the overarching need for effective cybersecurity strategies is universally acknowledged to protect against the economic ramifications of cyber threats. Dudin and Shkodinsky (2022) explore the specific methodical proposals aimed at enhancing the cyber stability of the national banking system against external challenges and threats in the digital economy. Their comprehensive analysis sheds light on the critical vulnerabilities within the banking system that predispose it to cyber risks, including the lack of information exchange on cyber-attacks, inefficient interaction with regulatory bodies, and the limited cybersecurity budgets of small and medium-sized banks.…”

“…The economic liquidity and functionality of the state are heavily reliant on the financial sector, and cyber-attacks that disrupt services or result in data loss can have a detrimental impact on the global economy. The digital economy presents both opportunities and challenges for the national banking system, as explored by Dudin and Shkodinsky (2022). Their study focuses on the cyber stability of the Russian banking system, offering insights into the external challenges and threats to cyberspace that can undermine the sustainability of the national banking system.…”

Cyber Threats Classifications and Countermeasures in Banking and Financial Sector

“…Several studies have been conducted to identify and classify cyber threats in the banking and financial sectors. Shkodinsky [12] conducted a critical review of the domestic and foreign scientific literature and practical recommendations to ensure the protection of the banking institution from cyber threats in the digital economy. Yevseiev et al [27].…”